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Millions of homeowners could soon have the option of using a debit card to make their monthly mortgage payments instantly with the integration of payment processing technology developed by REPAY into ICE Mortgage Technology’s Servicing Digital solution.
Mortgage loan servicers typically won’t accept credit card payments because they don’t like the fees. But paying your mortgage with a debit card provides some of the advantages of a credit card — like speed, security and convenience, Atlanta-based REPAY claims.
“Debit card acceptance capabilities expand payment options for borrowers, allowing them to make payments during month-end and grace periods, which enhances their overall ability to manage finances efficiently,” REPAY said in announcing the deal Thursday. “This feature also improves the resolution of collection accounts by increasing the ability to promptly address them, and it reduces the need for slower and often costlier methods like wires or overnight payments.”
Paying your mortgage with a debit card is more convenient for borrowers than a traditional paper check or wire transfer payment, REPAY says, and pulling funds from the borrower’s account instantly means they’re less likely to get hit with late fees while also getting real-time payment confirmation. Lenders can tap stored payment data for future transactions while ensuring compliance with the Payment Card Industry Data Security Standard (PCI DSS).
REPAY processed about $25.7 billion in debit card payments last year through 262 integrations with various software providers, the company said in its most recent annual report to investors.
The integration deal with ICE Mortgage Technology will help REPAY expand the reach of its payment processing solutions beyond core verticals including personal and automotive loans, receivables management and business-to-business payments. REPAY accelerated its entry into the mortgage and healthcare payments verticals in 2020 with the acquisition of CDT Technologies, which did business as Ventanex.
Founded in 2006 by current executives John Morris and Shaler Alias, REPAY went public in a 2019 merger with a special purpose acquisition company (SPAC). Repay Holdings Corporation trades on the Nasdaq Capital Market for early-stage companies that have relatively low market capitalizations under the ticker RPAY.
ICE Mortgage Technology says its MSP loan servicing system was used by 92 mortgage and home equity servicing clients to handle more than 50 million loans last year. MSP integrates with Servicing Digital, a consumer-facing mobile app and responsive web solution that loan servicers can brand as their own.
Servicing Digital not only allows borrowers to see their loan status and make payments but serves as a “customer engagement and retention tool” by providing information about the borrower’s home equity and neighborhood property values and helping loan servicers market a new mortgage to clients who are ready to refinance or buy their next home.
Servicing software ICE Mortgage Technology’s biggest business
Source: Intercontinental Exchange Inc. quarterly earnings report.
ICE’s acquisition of Black Knight in the third quarter of 2023 made it a major player in mortgage servicing technology — a new line of business that is now the biggest source of revenue for the company’s ICE Mortgage Technology segment. At $214 million in Q1 2024, mortgage servicing software generated 43 percent of ICE Mortgage Techology’s revenue for the quarter.
After surging above $1 billion in 2021 during the refinancing boom, revenue generated by mortgage origination technology declined as rising interest rates curbed borrowing activity. ICE Mortgage Technology saw revenue generated by originations technology fall by 22 percent in 2022, to $798 million, and by another 13 percent last year, to $694 million.
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